scholarly journals The firm-level link between productivity dispersion and wage inequality: A symptom of low job mobility?

2021 ◽  
Author(s):  
Keyword(s):  
Wage Inequality ◽  
Job Mobility ◽  
Firm Level

Trade Shocks, Firm Hierarchies, and Wage Inequality

2020 ◽  
pp. 1-45
Author(s):  
Benjamin U. Friedrich
Keyword(s):  
Wage Inequality ◽  
Wage Gap ◽  
Firm Level ◽  
Production Scale ◽  
Trade Shocks ◽  
Knowledge Based ◽  
Research Designs ◽  
Pay Differences ◽  
Cartoon Crisis ◽  
Wage Cuts

This paper shows robust effects of trade shocks on within-firm wage inequality through changes in firm hierarchies. It uses two distinct research designs—one considering firm-level shocks to foreign demand and transportation costs, the other analyzing the Muslim boycott of Danish exports after the 2006 “Cartoon Crisis”. Consistent with knowledge-based and incentive-based hierarchy models, trade shocks affect organizational choices through production scale. Adding a hierarchy layer increases inequality throughout the organization, particularly widening the 90-50 wage gap and pay differences between top and bottom layers. Delayering after the boycott leads to wage compression through wage cuts, demotions, and employee turnover.

scholarly journals Gender Inequality In Relational Position-Taking: An Analysis Of Intra-Organizational Job Mobility Networks

2021 ◽  
Author(s):  
Annika Wilcox ◽  
Steve McDonald ◽  
Richard A. Benton ◽  
Donald Tomaskovic Devey
Keyword(s):  
Network Analysis ◽  
Gender Inequality ◽  
Wage Inequality ◽  
Upward Mobility ◽  
Job Mobility ◽  
Distribution Centers ◽  
Organization Level ◽  
Meta Regression ◽  
Underlying Mechanisms ◽  
The Relationship

We conceptualize within-organization job mobility as a position-taking process, arguing that the structure and outcome of claims over positions are characteristics of organizational inequality regimes. Drawing on data from 10 distribution centers from a large U.S. firm, we examine gendered job mobility as the observed network of workers moving among jobs. Results from network analysis and meta-regression reveal that in the firm examined, workers tend to move between jobs with similar gender compositions, that mobility lattices tend to be more ladder-like for male-concentrated jobs but more circuitous for female-concentrated jobs, and that there is less upward mobility overall in organizations with higher levels of wage inequality. Both organization level inequalities and the relationship between positions within organizations condition mobility. While we do not observe discursive claims on positions, we argue that these are the underlying mechanisms driving gendered job mobility.

scholarly journals Wage Inequality and Firm Growth

2017 ◽  
Vol 107 (5) ◽  
pp. 379-383 ◽  
Author(s):  
Holger M. Mueller ◽  
Paige P. Ouimet ◽  
Elena Simintzi
Keyword(s):  
Wage Inequality ◽  
Firm Growth ◽  
Positive Association ◽  
Developed Countries ◽  
Evidence Based ◽  
Firm Level ◽  
Country Level ◽  
Global Trend ◽  
Pay Inequality ◽  
Over Time

We discuss firm-level evidence based on UK data showing that within-firm pay inequality--wage differentials between top- and bottom-level jobs--increases with firm size. Moreover, within-firm pay inequality rises as firms grow larger over time. Lastly, using wage data from 15 developed countries, we document a positive association between aggregate wage inequality at the country level and growth by the largest firms in the country. We conclude that part of what may be perceived as a global trend toward more wage inequality may be driven by an increase in the size of the largest firms in the economy.

Establishment heterogeneity, rent sharing and the rise of wage inequality in Germany

2016 ◽  
Vol 37 (2) ◽  
pp. 210-228 ◽  
Author(s):  
Clemens Ohlert
Keyword(s):  
Wage Inequality ◽  
Firm Level ◽  
Content Type ◽  
Individual Level ◽  
Establishment Size ◽  
Institutional Settings ◽  
Rent Sharing ◽  
The Individual ◽  
Firm Structures ◽  
Total Inequality

Purpose – The purpose of this paper is to examine the role wage dispersion across establishments has played in recent increases in total wage inequality in Germany and compares it to inequality changes at the individual level. It is queried whether the contribution of establishment heterogeneity to the rise of wage inequality stems from changes of institutional settings or from structures such as establishment size and the composition of the workforce. Design/methodology/approach – Applying regression-based decompositions of variance to German linked employer-employee panel data for the years 2000-2010 it is analysed to what extent changes associated to firm structures contribute to the rise of total wage inequality. Findings – Results show that the rise in wage inequality in Germany to a great extent is associated to rising wage variance across establishments, implying that establishment specific wage premiums have grown. By further decomposing across firm components of wage inequality, it is found that changes in across establishment wage inequality related to collective bargaining, worker co-determination and internal labour markets together account for about 3 per cent of the rise in total inequality. Inequality changes related to establishments’ skill and occupational composition account for about 11 per cent and establishment size alone accounts for about 18 per cent of the rise in total inequality. Originality/value – The main contribution is to quantify the relation of specific establishment characteristics to the rise in total wage inequality over time. Conclusions are drawn about the importance of mechanisms of rent sharing at the firm level in comparison to the determination of wages by individual qualification.

scholarly journals GVC and wage dispersion. Firm-level evidence from employee?employer database

Equilibrium ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 357-375
Author(s):  
Dagmara Nikulin ◽  
Joanna Wolszczak-Derlacz ◽  
Aleksandra Parteka
Keyword(s):  
Wage Inequality ◽  
Value Added ◽  
Research Area ◽  
Firm Level ◽  
Level Data ◽  
Research Gap ◽  
Micro Level ◽  
Sector Type ◽  
Sample Heterogeneity ◽  
Wage Inequalities

Research background: Wage inequalities are still part of an interesting policy-oriented research area. Given the developments in international trade models (heterogeneity of firms) and increasing availability of micro-level data, more and more attention is paid to wage differences observed within and be-tween firms. Purpose of the article: The aim of the paper is to address the research gap concerning limited cross-country evidence on a nexus of wage inequality?global value chains (GVCs), analysed from the perspective of wage inequality components within and between firms. Methods: This paper uses a large employee?employer database derived from the European Structure of Earnings Survey (SES), combined with sector-level indicators of GVC involvement based on the World Input-Output Database (WIOD). As a result, a rich database covering more than 7.5 million observations is created. The regression-based decomposition modelling technique developed by Fiorio and Jenkins (2010) is used to identify the contributions of different factors to wage inequalities, focusing on the components within and between firms. Findings & value added: The analysis presented in this paper aimed to show the contribution of GVC involvement, among various other factors, to the observed inequality of wages. Due to the use of a rich database that merges employer and employee data, the effects materialised with respect to different types of wages could be analysed separately, in particular components between and within firms. The general conclusion from the regression-based decomposition in log wages is that GVCs contribute marginally to the observed wage inequality in the European sample analysed in this paper. Some differences confronting the components within and between firms (the latter dominates) are observed; there is also certain intra sample heterogeneity in the estimated results (e.g. due to sector type or country group), but the general result is robust.

scholarly journals Selection into Trade and Wage Inequality

2014 ◽  
Vol 6 (3) ◽  
pp. 157-202 ◽  
Author(s):  
Thomas Sampson
Keyword(s):  
Wage Inequality ◽  
Wage Premium ◽  
Advanced Technology ◽  
Wage Distribution ◽  
Assortative Matching ◽  
Firm Level ◽  
Industry Trade ◽  
Worker Skill ◽  
High Skill ◽  
Selection Of

This paper analyzes how intra-industry trade affects the wage distribution when both workers and firms are heterogeneous. Positive assortative matching between worker skill and firm technology generates an employer size-wage premium and an exporter wage premium. Fixed export costs cause the selection of advanced technology, high-skill firms into exporting, and trade shifts the firm technology distribution upwards. Consequently, trade increases skill demand and wage inequality in all countries, both on aggregate and within the upper tail of the wage distribution. This holds when firms receive random technology draws and when technology depends on firm-level R&D. (JEL F16, J23, J24, J31)

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